Pidilite Industry Ltd

Presented By :​ ​Guideline by :
Puja shrikant patil Sheetal Gujrathi
Pidilite Industry (chemical industry)
The company was founded in 1959. Pidilite's corporate office is located in Andheri​ ​(East),
Mumbai​.The company has manufacturing facilities in India, including​ Mahad, (Maharastra)
Vapi, (Gujarat) Baddi and kala Amb, both in (Himachal Pradesh ). FeviKwik is a popular
cyanoacrylate based instant adhesive in South Asia​.

PRODUCT DESCRIPTION:
Product Type (Industrial and consumer):​ Our focus is on innovating specialty products that
cater to the manufacturing sector. The beginning was modest but quite quickly we went from
manufacturing industrial pigments to adhesives and sealants, art materials, construction and paint
chemicals, industrial adhesives, synthetic resins, industrial and textile resins, and leather
chemicals. A strong distribution network and sales offices in eight cities deliver these products to
our customers.
An army of over 1,000 representatives cater to the needs of each and every one of our customers,
wherever they are. Industrial adhesives, synthetic resins, organic pigments, pigment preparations
and surfactants are part of this business. Our presence in the country and in the global arena is
strong. Despite the emergence of products similar to our brands, we continue to remain the
market leader in the adhesive industry and our brands continue to win market share and hearts.
INDUSTRIAL PRODUCT:
Textile and paper chemical
Industrial Resins
Leather chemicals
Industrial Adhesives
Footwear Adhesives
Organic pigments and prepration
Industrial Bonding Solution
Maintenance, Repairs and overhaul

CONSUMER PRODUCT:
Fevicol
Fevicol MR
Dr. Fixit
FeviKwik
M-seal
Fevistik
Hobby ideas
Fevicryl
Others
PRODUCT FEATURES:
With the assistance of our capable and assiduous team of executives, we are highly immersed in
bringing forth a broad consignment of ​Fevicol Pidilite Adhesives.​ These products are made up
using optimum grade inputs along with pioneering technology as per pre-defined industry
principles. Valued for their durability and ruggedness, these could be acquired from us at most
inexpensive rates.
Fevicol SR 998 IS is a synthetic rubber based solvent containing contact adhesive. It exhibits
excellent bond strength. The adhesive dries in a tough flexible film with good resistance to water
and ageing. It can be applied by brush or roller.
Incepted in the year 1985, Reliable Hardware Stores is an illustrious firm betrothed as Trader,
Supplier and Wholesaler a comprehensive collection of Brass Hinges, Brass Aldrops, Brass Jhula
Salia, Brass Tower Bolt, Brass Handles, Cabinet Handles, Cabinet Knobs, Bathroom
Accessories, Curtain Brackets, Curtain Rods, Aluminium Section, Floor Spring, Door Closer,
Cubical Shower Fittings, Door Locks, Nails and Screws, PU Adhesives, Self Drilling Screws and
Bolts, SS Fittings Doors and Windows. Presented products are specifically made up utilizing the
optimum quality components and contemporary technology according to the set industry
restrictions. The presented collection of products is broadly accredited by our prestigious
customers for their unique features such as, excellent performance low maintenance, extended
durability, low maintenance, high finish, compact design and simple installation. Clients can
acquire these products from us at very reasonable rates.
Features:
● Longer life nature
● Safe to use
● Precise composition
● Free from benzene makes it non-hazardous
● Excellent strength
● Superior resistance to water
● Fast drying

List of Best Selling Pidilite India price

Latest Pidilite India Price

WD-40 MAINTENANCE SPRAY RUST REMOVAL,400ML Rs. 320

Fevicol adhesive glue bottle,fevicol 200gm squizee glue,(pack of 2) Rs. 200

Rustolene Rust Disintegrator -Maintenance Liquid 500ml (Pack Of 2 ) Rs. 250

 WD-40 MAINTENANCE SPRAY RUST REMOVAL,63.8GM Rs. 200

WD-40 MAINTENANCE SPRAY RUST REMOVAL,(PACK OF Rs. 590

400ML+170GM)

Zorrik 88 Quick Maintainence Spray 32GM Rs. 150

Fevicol adhesive glue bottle,fevicol 50gm squizee glue,(pack of 24) Rs. 480

FEVITITE RAPID 36GM Rs. 180

M-SEAL REGULAR EPOXY COMPOUND 100GM Rs. 130

Rustolene Rust Disintegrator -Maintenance Liquid 500ml Rs. 350

PRODUCT USP:
SWOT Analysis of pidilite industry with usp

Pidilite industry Ltd

Parent company Pidilite Industries Ltd.

Category Consumer chemicals/ Specialty chemicals

Sector Industry product and chemical

Tagline/Slogan Building Bonds

USP Market leader in adhesives, sealants, polymer emulsions,

hobby colours and construction chemicals in India.

Pidilite Industries STP

Segment Customers looking for ease-of-use and value-for-money

products.

Target Group Carpenters, plumbers, housewives, constructors/masons

 ,etc.

Positioning Pioneer and market leader in consumer adhesives and

specialty chemicals in India.

Brands 1. Fevicol
2. Dr. Fixit
3 .Fevikwik
4. Moto Max
5. M-Seal
6. Fevi Stick

Strengths Below is the Strengths, Weaknesses, Opportunities &

Threats (SWOT) Analysis of Pidilite Industries :
1. The advertising and marketing of Pidilite has been very
strong, especially the Fevicol ads have become a viral hit
among the masses.
2. The name Fevicol has become synonymous with
adhesives and has almost become a generic for anything
that sticks. This also has helped other brands of Pidilite
such as Fevistik, Fevikwik, etc. in their sales.
3. Fevicol and M-seal alone account for more than 50% of
the total revenue of Pidilite, which eases the pressure on
the sales of other brands and businesses.
4. Brand recall and value are extremely strong for Pidilite
and have become the star attraction for many television
commercials.
5. Fevicol ads have also won accolades and awards at
major advertising award festivals and shows.
6. Strong R&D center to cater to the growing need for
innovative products and services.

Weaknesses 1.Acquisition of the Cyclo brand of car care products is a

weak factor as India exhibits a very fragmented market for
the same with very little customer loyalty.
2. Revenue generation is over dependent on Fevicol and
M-seal which results in reduced investments on other
brands and businesses.

Opportunity 1.Pidilite organizes many creative competitions for

 students and young scholars, such as the 'International
Creative Contest' where approx. 800,000 students from
3000 schools participate.It also helps in promoting the
brand very well.
2. The chemical industry in the world in growing very
strongly and focus on emerging economies in other parts of
the world such as Brazil, South Africa, China, Singapore,
Thailand and East Africa is a great opportunity to establish
stronghold in the international market.

Threats 1. The manufacturing cost of Pidilite’s products is largely

dependent on crude oil and petroleum prices which are
fluctuating by the minute.
2. Competitors are equally hard pressed on delivering
innovative products and services.

Competitors Below are the 3 main Pidilite Industries competitors :

1. Tata Chemical
2. BASF
3. BOC India

1.Acquisition of the Cyclo brand of car care products is a weak factor as India exhibits a very
fragmented market for the same with very little customer loyalty. 2. Revenue generation is over
dependent on Fevicol and M-seal which results in reduced investments on other brands and
businesses.The unique selling proposition of Fevicol was its ease of application as it was a
synthetic resin adhesive. This made the product an instant hit with the wood furniture making
industry. Pidilite realized that the brand's popularity & success can be leveraged by launching a
variant suitable for the retail segment.

PRODUCT NEED/UTILITY:
Pidilite Industry needs no introduction for an Indian consumer, who has grown up using Fevicol,
Fevi-quick, Dr Fix-it. m Seal, and Fevistick. It is a branded consumer centric play of available at
higher valuation range (the range, which we at valuepickr tends to ignore)
The proposed products, including production of Specialty chemicals having high demand in the
export market. Also their demand is increasing in the domestic market. Production of these
products are domestically reduces the need to import these in future along with signification
scope for export in these products.
Continuous innovation leads to new and improved products, allowing us to keep pace with our
customers' evolving needs. Realizing the household need Continuous innovation leads to new
and improved products, allowing us to keep pace with our customers’ evolving needs. Realizing
the household need for stronger adhesives, we re-looked at some of our industrial products, and
repackaged and re-launched them with a retail focus.
Ideal for small DIY fixes, these innovations have been very well-received and inadvertently, we
went on to create a wholly new segment. Whether it is our retail products or industrial, our
offerings start out within the factory but make their way into the homes and hearts of our
consumers. Today, our brand portfolio includes a complete gamut of products in the consumer
and industrial application spaces.we have in store for our customers, optimum quality woodgrip
that are procured from the certified vendors of the industry. These woodgrip adhesive is used for
bonding wood, plywood, laminates and veneers, particle board, block board, hardboard, mdf to
each of the substrates. To meet the specific requirements of our customers, we are offering these
adhesives in the package size of 20 kg and 50 kg. We offer fevitite in bulk as well as small
packaging which is widely used as industrial adhesives. We offer entire range of fevicol I. E.
Fecicolsh, fevicol 998 and others as per the needs of our customers.
Our focus is on innovating specialty products that cater to the manufacturing sector. The
beginning was modest but quite quickly we went from manufacturing industrial pigments to
adhesives and sealants, art materials, construction and paint chemicals, industrial adhesives,
synthetic resins, industrial and textile resins, and leather chemicals. A strong distribution
network and sales offices in eight cities deliver these products to our customers.
An army of over 1,000 representatives cater to the needs of each and every one of our customers,
wherever they are. Industrial adhesives, synthetic resins, organic pigments, pigment preparations
and surfactants are part of this business. Our presence in the country and in the global arena is
strong. Despite the emergence of products similar to our brands, we continue to remain the
market leader in the adhesive industry and our brands continue to win market share and hearts.
âPidilite has strong brands like Fevicol, Dr.Fixit, Fevi Kwik, m-seal, hobby ideas, moto max, Fevi stik
etc. Fevicol has become the household name in india and is the largest selling white adhesive brand in
india. With established brand name in the field of adhesives and construction chemical, the prospect of
the company appears promising in the future.â
âThe companyâs net sales and profit have grown at 10 year CAGR growth of 18% and 21% respectively.
With Strong ROE of 26.9% and D/E ratio of 0.24, the fundamental of the company looks strong. Fevicryl
Hobby Ideas, a leading hobby acrylic colours brand, added to its wide range of products by launching
Sparkling Pear Colours. These colours give a unique sparkling shine to hand painted articles on fabric and
non-fabric surfaces. Also Dr. Fixit Kwikflor Cementitious Flooring Solutions was launched specifically to
level and renovate industrial floors that are exposed to heavy loads and frequent abrasions. Wudfill, a
cynoacrylite adhesive, was launched for the first time in India for the woodworking segment. This product
is used to fill holes and knots in wood.

TARGET CUSTOMER:
Pidilite Industries Limited provides consumer and specialties chemical products in India and
internationally. It offers a range of consumer and craftsmen products, such as adhesives and
sealants, art materials and stationary, construction chemicals, automotive chemicals, fabric care
products, and decorative paints used by carpenters, painters, plumbers, mechanics, households,
students, and offices. The company also provides industrial specialty products that include
industrial adhesives, textile chemicals, organic pigment powders, industrial resins, and leather
chemicals. Pidilite Industries sells its products primarily under Fevicol, Cyclo, Sargent Art,
hobby ideas, Dr. Fixit, Roff, and m-seal brand names. The company was founded in 1959 and is
headquartered in Mumbai, India.
Citi has a neutral view on Pidilite Industries with a target price of Rs 1,216.
The current market price of Pidilite Industries is Rs 1,104.75.
Time period given by the brokerage is one year when Pidilite Industries price can reach the
defined target.
Volume growth was decent in 1QFY19​ — Standalone consumer & bazaar segment had 20 per
cent growth in volume on a low base (due to GST related disruption in 1QFY18). Standalone
industrials segment had 7 per cent growth in volume.

Demand environment improving slowly ​— Management highlighted that demand environment

has been improving, albeit gradually; widening distribution reach has been the other key driver
aiding Pidilite's volume growth. GST implementation has led to some market share gain for
organized players; although the network rationalization benefits have been neutralized by freight
(crude) cost increase.
Pidilite has spread its network to every nook and corner of India. Its headquarters base is at
Mumbai in Maharashtra. It has several manufacturing plants located at Kala Amb and Baddi at
Himachal Pradesh, Vapi in Gujarat and Mahad in Maharashtra. Pidilite’s popularity has spread to
several countries and it has opened international operations at Middle-East and Brazil via
subsidiaries and overseas manufacturing plants at UAE, Thailand, Egypt and Bangladesh. Its
products are available in Bangladesh, Sri Lanka, Indonesia, Egypt, United Kingdom, United
States, Singapore, Thailand, China South Africa, UAE and Ghana.
Pidilite has a strong R&D department that helps in creating innovative products for its company.
It has a widespread distribution network that includes services of wholesalers, warehouses,
logistic companies, retailers and distributors to reach consumers via the hyper market,
supermarket, discount stores and convenience stores.
Pidilite is a pioneer in its zone with M-Seal and Fevicol accounting for more than 50% of its total
revenues. It has targeted masons, constructors, housewives, plumbers and carpenters as its
potential customers. Its manufacturing cost is heavily dependent on fluctuating prices of
petroleum and crude oil. It also faces stiff competition from several rival brands. Pidilite is a
quality brand and has adopted a penetration pricing ​policy as it wanted to reach every nook and
corner of India. It has also implemented competitive pricing strategy ​to deal with product prices
of rival brands.

The tagline of Pidilite is Building Bonds and it describes the company aptly. It has implemented
several marketing strategies to increase its brand visibility in the consumer market. Pidilite has
launched ad campaigns in electronic and print media via magazines, newspapers, billboards,
radio and popular television channels. It also advertises via social media platforms like its own
website, other shopping portals, Facebook, Twitter and YouTube. Pidilite is aware of the impact
of a celebrity endorsement on the mindset of common masses. It has roped in Indian superstar
Amitabh Bachchan to act in its commercials for Dr Fixit and act as its brand ambassador.
It has organised creative competitions for young scholars and students like International Creative
Contest where participants are nearly 3,000 and 800,000 in terms of schools and students
respectively. Its sub-brands have won several awards and accolades in recognition of their
services. Best Ambient Media in the year 2013-14, Buzziest Brand 2014, 1​st in Consumer
Products and Zee Business Brand Excellence Award have been earned by its number one brand
Fevicol.

CONSUMER PURCHASING BEHAVIOUR:

Pidilite Industries’ adhesive Fevicol is a brand of adhesives owned by Pidilite Industries. It
present in about 54 countries worldwide and still expanding. Fevicol’s advertising campaigns
have always won prestigious global awards, and there is no surprise as to why.
Fevicol celebrates its 50 years with the advertisement ‘Moochwali’ in India. The iconic adhesive
brand’s advertisements have always been atypical and comical, right from the unbreakable egg to
the villagers glued together. This ad has been referred to as ‘Moochiwala’ because it revolves
around a woman with a moustache or ‘moochi’ stuck to her for life.

5 STEPS DECISION MAKING PROCESS:

1) Problem recognition - ​The buying process starts when the buyer recognizes a problem or
need triggered by internal or external stimuli. ( Need = psychological or physiological
requirements ).

2) Information search - the information about the product either from family, friends,
neighborhood, advertisements, wholeseller, retailers, dealers, or by examining or using the
product.

3) Evaluation of alternatives - after getting the required knowledge about the product the
consumer evaluate the various alternatives on the basis of it’s want satisfying power, quality and
it’s features. High score of metric of price availability quality

4) Purchase decision -​ after evaluating the alternatives the buyer buys the suitable product.

5) Post purchase behavior - ​after buying the product consumer will either be satisfied or
dissatisfied. If the consumer is not satisfied in that case he will be disappointed otherwise If he is
satisfied than he will be delighted.
This product is synonymous to glue. Most popular adhesive brand available in Indian market.
This is ​easy-to-use glue. This product is widely used as an adhesive to stick or bond various
items like papers, cardboards, plywood, fabrics, wood and thermocol.

Q3) Which attributes are important and why?

This product is very economical.

Easy to use.
Non toxic.
Comes in various packaging.
Settles very fast so it saves a lot a time.

All these attribute makes Fevicol a front runner in adhesive market

Q4) If this decision is the first time, how will it go? If it is repeat, how will it go?

If the decision is the first time then a lot of credit goes to advertisements and brand image of
Fevicol. Which positions it as best adhesive in Indian market for last 50 years. Its availability in
many packaging makes it easy for customer to pick this product ( even if on trial basis ). If
decision is repeat it maybe influenced by ease of use of the product. Time saved by usage of this
product and its ease of availability on shops across India.

5. How was the deliberation(thinking) in your head?

Fevicol is one of the most iconic brands in the Indian market. The uniqueness of its success story
is not only brand positioning but also of advertising communications, be it in the print or
electronic media. So I have chose this product to explore more about their brand strategy. How
they touches the emotional chord every time they come up with a new advertisement. How even
after 50+ years of there inception they still manage to be number one. How they position there
brand. All these factors

PESTEL ANALYSIS:
A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the
macro-environmental (external marketing environment) factors that have an impact on an
organisation. The result of which is used to identify threats and weaknesses which is used in a
SWOT analysis

PESTEL stands for:

● P – Political
● E – Economic
● S – Social
● T – Technological
● E – Environmental
● L – Legal
Political Factors This can include – government policy, political stability or instability in
overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade
restrictions and so on.The Board of Directors (“Board”) of Pidilite Industries Limited has
adopted this Dividend Distribution Policy to comply with these Regulations. Of the USD 40
million raised through issue of zero coupon Foreign Currency Convertible Bonds in 2007-2008,
Bonds aggregating USD 33.3 million were outstanding as on March 2012. Bonds worth USD 3.9
million were converted during the year and 15,14,014 equity shares issued. The bond holders
remain entitled to convert their holdings into Equity shares anytime upto 1st December, 2012.
These Bonds are redeemable on 7th December, 2012
Economic Factors

Economic factors have a significant impact on how an organisation does business and also how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income of consumers and businesses and so on.Due to the slowing down of Indian
economy and weak economic conditions in US & Europe, sales growth in the second half of the
year was lower than that recorded in the first half. Growth was impacted, largely in the Speciality
Industrial Chemical segment, where the growth was 9.5% as compared to 24.4% in the previous
year. The Consumer and Bazaar Segment grew by 22.8%, in line with past trend.

Social Factors

Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of
the population. These factors include – population growth, age distribution, health
consciousness, career attitudes and so on. These factors are of particular interest as they have a
direct effect on how marketers understand customers and what drives them.

Technological Factors

We all know how fast the technological landscape changes and how this impacts the way we
market our products. Technological factors affect marketing and the management thereof in three
distinct ways:

● New ways of producing goods and services

● New ways of distributing goods and services
● New ways of communicating with target markets

Adhesive Industry • Growth driven by packaging, construction and automotive sectors • Increase
in disposable income levels, rising GDP and booming retail markets propel growth in flexible
packaging industry • Rapid urbanization coupled with growing infrastructure and real estate
construction projects fuel the demand for adhesives Adhesives market in India is anticipated to
reach 379 thousand metric tons by 2020 at a CAGR of 9-10%. Adhesive Industry • Growth
driven by packaging, construction and automotive sectors • Increase in disposable income levels,
rising GDP and booming retail markets propel growth in flexible packaging industry • Rapid
urbanization coupled with growing infrastructure and real estate construction projects fuel the
demand for adhesives Adhesives market in India is anticipated to reach 379 thousand metric tons
by 2020 at a CAGR of 9-10%. Industry Application Paper Board and Packaging Packaging is
the largest market for adhesives. Most packaging materials used nowadays are different materials
laminated together and adhesives are used for this purpose, thus giving packaging a
commercially alluring appearance Building and Construction Adhesives are used in a variety of
applications in building and construction including flooring underlayment, flat and drywall
lamination, sandwich construction, profile wrapping, prefinished panels, edge bonding, tilling,
carpet layment, etc. Furniture In the furniture-making industry, polyvinyl acetate dispersion
adhesives are widely used.

Environmental Factors

These factors have only really come to the forefront in the last fifteen years or so. They have
become important due to the increasing scarcity of raw materials, polution targets, doing
business as an ethical and sustainable company, carbon footprint targets set by governments (this
is a good example were one factor could be classes as political and environmental at the same
time). These are just some of the issues marketers are facing within this factor. More and more
consumers are demanding that the products they buy are sourced ethically, and if possible from a
sustainable source.

A firm commitment to growing our business in ways that protect the environment, our people,
and society at large. As responsible corporate citizens, we at Pidilite strictly comply with all
applicable legal requirements and other regulations related to Occupational Health, Safety and
Environmental aspects and minimize OHS Hazards & Risks applicable to our products,
processes and services.

Legal Factors

Legal factors include - health and safety, equal opportunities, advertising standards, consumer
rights and laws, product labelling and product safety. It is clear that companies need to know
what is and what is not legal in order to trade successfully. If an organisation trades globally this
becomes a very tricky area to get right as each country has its own set of rules and
regulations.​Should be managing litigation and IP lawyers but should have independently handled
recovery litigation matters intellectual property matters and litigation.

TARGET MARKET:

Segmentation, Targeting & Brand Positioning are marketing tools used to divide a large
homogeneous target group into smaller subsets of consumer groups with similar needs and
requirements, and thus designing and implementing strategies to garner desire of the said subset
for a product. In other words they are used to align product benefits with consumer needs to
create a unique value proposition for the product.

Segmentation

Segmentation can be of 4 types:

1. ​Geographic Segmentation divides the market into geographical units based on similar

surroundings or environment. Such as Urban/Rural, Tier-1/Tier-2, Climatic, Terrain, SCR etc

Fevicol has not been limited to any Geographic location and is segmented for the Mass Market.

2. Demographic Segmentation divides the market into groups based on age, gender, income,

family size, occupation, education, SEC etc

Marketers have gone for Market specialization for Fevicol – Eg: carpenters, craftsmen, etc.

Products belonging to different categories exist as choices for the target group they focus on.

3. ​Behavioral Segmentation divides the market on the basis of the groups attitude, knowledge,

use or response towards a product. Eg: Need based segmentation, Role in decision buying

process based segmentation, User and Usage based segmentation.

Fevicol has been segmented for customers looking for economic products with quick solutions to

their problems and for those who need it regularly.

4. Psychographic Segmentation divides the market on the basis of psychological/personality

traits, lifestyle or values.

Targeting

Based on the above 4 guidelines marketers target a market segment beneficial to the sales of their

product. The choice of target segments depends on 3 main factors:

1. How large/relevant the segment is and how much can it grow?

2. How well the existing segment is served by competitors?

3. Do we provide enough benefits to attract the current market segment to the product?

Target Groups for Fevicol​: Wholesalers, retailers, stationery stores, carpenters, housewives,

students

Brand Positioning

Brand positioning is about creating a perception about the product in the minds of the customer.

After Targeting, marketers work on implementing the targeting on different segments through

Positioning.

This is done by creating Points of Parity and Points of Differentiation. Both are needed to drive

awareness for your product.

Points of Parity​: A product should meet the basic need of the consumer base. This feature

maybe the basic product idea. Lacking this the consumer may not relate your product to the

product category.

Fevicol has become synonymous with term adhesive, proving the brand relevance in the eyes of

the consumer.
Points of Differentiation​: Product features which may be exclusive only to your brand is

highlighted to create a differentiating factor and hence create a unique identity in the eyes of the

consumer.

Fevicol has been Positioned as an adhesive of high quality for affordable prices. Though slightly

expensive it does not hurt the customer much as the overall cost of glue is miniscule considering

the cost of furniture. This has been put forward as the product’s unique value proposition.

Positioning is done via the 4 channels of Marketing Mix.

MARKET TRENDS:

The Indian packaging industry accounts the highest share of the adhesives & sealants industry, in

terms of revenue. Adhesives are widely used in paper bonding, owing to their physical

properties. Their applications range from corrugated box construction and the lamination of

printed sheets to packaging materials used for all types of consumer products. Therefore, the

overall market for adhesives & sealants is expected to have a high growth in the country, as its

end-user industries are showing a positive growth in India. This positive growth is attributable

mainly to the strong demand from the food & beverage packaging sector. The rising demand for
fast-moving consumer goods among India’s middle-class population has been a major boost to

the market. The Indian adhesives & sealants market is anticipated to grow with the growth of the

packaging industry.

Adhesives & sealants, owing to their characteristics and physical properties have an extensive

use in the building & construction industry. In the construction sector, waterborne adhesives hold

the major market share of over 50%, followed by the reactive adhesives of over 15% market

share, solvent-borne, and others. The construction sector plays a pivotal role in the economic

growth of a nation, especially in an emerging economy like India. The construction industry is

the second-largest sector after agriculture in the country. The government is taking various steps

to restructure the corporate taxes in order to make them more appealing to foreign investors. The

growing investments in the construction sector and the strategic initiatives of the Indian

government are expected to boost the construction sector in the country, thereby, to boost the

adhesives & sealants market in India.

MAJOR COMPETITORS

TOP COMPETITORS

Asian Paints has been one of Pidilite's top competitors. Asian Paints was founded in 1942, and is

headquartered in Mumbai, Maharashtra. Asian Paints competes in the Specialty Chemicals

industry. Asian Paints generates $1.6B more revenue vs. Pidilite.

Berger Paints is a top competitor of Pidilite. Berger Paints is a Public company that was founded

in Kolkata, West Bengal in 1923. Like Pidilite, Berger Paints also competes in the Specialty

Chemicals industry. Berger Paints has 2,044 fewer employees vs. Pidilite.

Jubilant Industries is perceived as one of Pidilite's biggest rivals. Jubilant Industries was founded

in 2007, and its headquarters is in Noida, Uttar Pradesh. Jubilant Industries competes in the

Agricultural Products field. Jubilant Industries has 2,251 fewer employees than Pidilite.

KEY SUCCESS FACTORS

"Pidilite is the archetypal professional organisation where one constantly walks the razor's edge.
You can have a point of view but only if you are well informed, and that will be constantly
tested"​—Bharat Puri (R), managing director, Pidilite

Tucked away in a small lane in the Mumbai suburb of Andheri, the Pidilite office is simple

and transports you back to the early 90s. Large sofa sets and leisurely shutting elevators

visibly conceal the power of a 6,062 crore company and the success of its key brands such

as Fevicol, Fevistik and M-Seal. That said, the sprawling campus does have a few new
buildings, a swimming pool and a large cafeteria. The contemporary structures signify that at

Pidilite, the past and the present exist in harmony.

At the helm of the company – and its transition – is Madhukar Parekh, the 70-year-old

executive chairman of Pidilite that was founded in 1954 by his late father, Balvant Parekh. It

has been ten years since Parekh embarked on a professionalisation drive at Pidilite bringing in

outsiders to prepare the company for its next phase. This strategy resulted in Parekh stepping

down in 2015 as managing director, to make way for Bharat Puri, an India Inc veteran with

over 30 years of experience across companies such as Asian Paints and Cadbury. With a

professional at the helm, will Pidilite better its growth as a family-run enterprise?

Early years

Pidilite started off by manufacturing synthetic glue and pigments for the textile industry. As a

pioneer in both these product categories, Pidilite never wanted to be a me-too company. “That

meant we were always on the lookout for opportunities and we placed a lot of emphasis on

R&D,” Parekh says. He has been working at Pidilite ever since he returned with a master’s

degree in chemical engineering from the University of Wisconsin-Madison (1971).

Although their focus was on innovation, the understated company needed to create a brand for

itself. It started off with direct marketing campaigns for Fevicol, targeting carpenters –who

were unaware of the brand – with initiatives like Fevicraft, a bimonthly magazine for

carpenters. “These were pioneering ideas for the time and even FMCG companies did not

have anything on the lines of Fevicraft, which gave furniture designs to carpentry

contractors,” says Parekh. In the 1970s the ad agency, O&M was roped in to help with the

branding process. They were responsible for creating the now-iconic logo (two elephants) and

introducing the famous tagline Dum laga ke haisha. “Instinctively, we understood that Fevicol

had the potential to become a big brand,” he adds. In 1985, when import liberalisation

negatively impacted the speciality business, its decision to back Fevicol was proven right. “It

was clear that products with strong brands would serve us well and we moved in that

direction,” he says. The seeds for a large company were sown.As the business grew

impressively, (by mid-1990s they were approximately 200 crore), Pidilite’s two businesses

– consumer and bazaar (C&B) and industrial chemicals – were separated. The star of the

C&B business was, needless to say, Fevicol: the brand had surged way ahead in terms of

product quality backed by smart and witty advertising. With the acquisition of M-Seal and Mr

Fixit (later rechristened Dr Fixit) in 2000, Parekh renewed his growth quest. “We were

looking at ways to constantly improve and were never satisfied with where we were. There

was a deep realisation that had set in on the need to improve on areas such as products,

services and customer care,” he recalls.

Turning point

To continue expanding, Pidilite needed to focus not just on the brand, but also on the people

running the company. For a family-run business, it was early in recognising the need for

senior professionals. For the first two decades, family members and early colleagues of

founder Balvant Parekh ran the company. But decision-making was still in the hands of the

promoter family – until a little over a decade ago, when Madhukar took the decision to cede

power to outsiders.

Ranjan Kapur, country manager at WPP and an independent director on the Pidilite board

since 2000, recalls a three-day off-site at the Renaissance, Mumbai in 2007, when Parekh first

brought up the issue of “the family stepping back”. Parekh said, “The role of the family

would now be different from what it was earlier, where its members were all over the

organisation.